Pricing:
Things are expensive because people have bought them at that price.
If they hadn't bought them, the price would be lower.
1. Learned in 1968. It costs a firm writing a purchase order a bunch of
money. If the buyer can add on another item to it, even one selling for
$15 less somewhere else, the buyer saves the firm money as compared
with writing an additional PO.
2. Some people want the best.
We had 3 lines, selling for $720, $1500, & $3K.
Except fpr unusual cases, all did the same thing well.
A well-known consulting firm said we could boost the 3K up to $3500 not
lose a sale. We did.
He was right.
"Some people want to buy the Cadillac of the line, once they have
decided to buy a car."
Karl